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The table below shows the supply and demand for the output ofa firm which creates pollution. The third column shows the supply schedule for the
The table below shows the supply and demand for the output ofa firm which creates pollution. The third column shows the supply schedule for the firm without paying the costs of pollution. The last column represents the supply cu rye when the firm also pays the social costs of pollution. 1What is the equilibrium quantity produced when the firm is paying both the private costs of production and the social costs of pollution? Supply and Demand for a Firm Which Generates Pollution . Quantity Supplied (without paying D Quantity emanded the costs of the externality} U 10 4 Quantity Supplied {after paying the costs of the externality) |$20 1 "9 3.5 |$19 3 "7.5 |$16 4 "4 s
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